Yash, to be eligible for MBA, you should have a Bachelor's degree in a 10+2+3 pattern or a 10+2+4 pattern. So with a Diploma, you need to study Bachelor's degree through lateral entry scheme and then complete the course either in s 3 year or 4 year course. Then you will be eligible for MBA. This is a longer route because Polytechnic course is not a Graduation degree but is a Diploma and both are not the same.
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